Rachel Reeves’ nightmare as ‘dismal’ information exhibits how UK financial system is in tatters | Politics | News | EUROtoday

Rachel Reeves faces nightmare financial information through the run-up to her Budget, set to be unveiled on November 26. The Office for National Statistics’ (ONS) information exhibits that round one in eight (12%) of buying and selling companies reported a rise of their turnover in August 2025 in contrast with the earlier calendar month, down 4 proportion factors from July 2025. This can also be the bottom proportion because the query was launched in March 2022.

In distinction, 28% reported a lower of their turnover, additionally up 4 proportion factors from July. “This is a fairly dismal outlook and should be a cause for concern for policymakers and the Bank of England,” David Morrison, Senior Market Analyst at FCA-regulated fintech and monetary providers supplier Trade Nation mentioned. The ONS specified that financial uncertainty was probably the most reported problem affecting turnover in early September at 28%, up three proportion factors from early August.

For companies with 10 or extra workers, probably the most generally reported problem was the price of labour at 36%.

Business bosses have warned the Chancellor to not repeat final yr’s nationwide insurance coverage tax raid, which noticed a £25 billion hike in employers’ contributions.

Ms Reeves has admitted earlier this month that tax coverage “does impact economic growth”.

She added: “One of the the explanation why I spoke in regards to the want for spending restraint at Cabinet yesterday is that I recognise that to guarantee that the numbers add up, it’s not simply what you herald, it’s additionally what you’re spending.

“But crucial for all of this is economic growth.

“If you can grow the economy, you can make these decisions around tax and spend so much easier.”

“One of the reasons why taxes have risen to such a high level is because we’ve had such poor growth and such low levels of investment and such a deterioration in our productivity performance, both compared to the past, but also compared with other countries.”

“I’m determined to drive those things up, and that is why growth continues to be the number one mission of this government, and tax policy also needs to reflect that mission.”

The Chancellor mentioned on September 11 that the UK financial system feels “stuck” as she revealed plans to contemplate enterprise charges reforms together with eradicating “cliff edges” for small companies.